Egypt Today: Egypt recorded its highest-ever primary surplus, reaching approximately LE 330 billion between July 2024 and February 2025, according to Minister of Finance Ahmed Kouchouk. This fiscal achievement reflects the government's efforts to enhance financial stability and improve revenue generation.
During a meeting with Prime Minister Mostafa Madbouly, Kouchouk highlighted that tax revenues grew by 38.4 percent year-on-year, marking the highest annual growth rate in recent years. This surge in revenue has enabled the government to increase spending on essential sectors. Health and education expenditures rose by 29 percent and 24 percent, respectively, compared to the same period in the previous fiscal year. Additionally, spending on subsidies, grants, and social benefits jumped by 44 percent, reflecting the state's commitment to supporting vulnerable groups.
Kouchouk also emphasized improvements in debt management, achieved through better distribution of interest payment obligations throughout the fiscal year. He noted that the growth rate of treasury-funded investments has slowed, aligning with the government's strategic approach to prioritizing public spending. By adjusting investment plans and adhering to the fiscal year’s expenditure ceiling, the government aims to ensure a more sustainable financial trajectory.
Looking ahead, Kouchouk presented the key priorities for the FY2025/2026 budget, with a strong focus on stimulating economic growth and job creation. The government aims to strengthen confidence in the Egyptian economy by supporting productive sectors, as well as expanding tourism and technology industries. Additionally, maintaining financial and economic stability remains a priority through adherence to fiscal targets, debt reduction, securing energy resources, and fulfilling sectoral commitments.
The government is also increasing allocations for social protection and human development programs, ensuring continued support for vulnerable populations. This includes expanding spending on initiatives such as the Takaful and Karama program, the health sector, and other social welfare projects.
During the meeting, Kouchouk provided an update on Egypt’s IMF reform program, confirming the approval of the fourth tranche disbursement and ongoing preparations for the fifth review. Additionally, he presented a proposal to reduce the debt of budgetary institutions, further reinforcing the government’s commitment to fiscal sustainability and long-term economic resilience.
With a balanced approach that combines economic growth, fiscal discipline, and expanded social support, Egypt’s FY2025/2026 financial strategy aims to sustain development while ensuring economic stability.
https://www.egypttoday.com/Article/3/139114/Egypt%E2%80%99s-Fiscal-Growth-LE-330-Billion-Surplus-38-4-Percent
